If you’re considering a vehicle upgrade, but you’re unsure about whether to consider trading up to new or a nicer pre-owned vehicle, maybe this information can help you decide. There are pros and cons to both options, but weighing your needs and priorities will help you make the right choice.
 
 
 
To start, used cars are less expensive than new cars. You’ll save thousands on depreciation alone. Depreciation is the reduction in the value of an asset with the passage of time. Typically everything you own loses value the longer you have it due mostly to regular use causing wear and tear. With new vehicles, though, depreciation happens almost instantaneously. A new car loses about 10% of its value the moment it’s driven off the lot. So when you purchase a used vehicle, even if it’s nearly new, you’ll save tons in depreciation alone. Late-model used vehicles might even come with remaining manufacturer warranty. And, if you have bad credit, typically a used car lot can find ways to finance you - but your interest rate will be much higher.
 
 
 
New vehicles cost more, but you might be able to keep your payment low by leasing. Leasing typically allows you to drive a nicer, more expensive vehicle for an affordable payment, but you do have to return it at the end of your lease. Low interest - or even NO interest - financing is available on new cars. That means it doesn’t cost you anything to take out a loan on the vehicle you’re purchasing, but you need good credit to qualify. New cars always come with a full warranty - usually anywhere from 3 years to 10 years on your powertrain (engine) and anywhere from 3 years to 6 years of bumper-to-bumper coverage. Additionally, many manufacturers offer complimentary maintenance. That means oil changes and typical maintenance services don’t cost you a penny. So while the vehicle might cost more initially, it will probably save you money over time. Plus, new cars come with that “new car smell” you just can’t duplicate. 
 
 
 
So which is right for you? Maybe you should check out your options at the Folsom Auto Mall. Our eight convenient dealerships have twelve different new car brands available as well as over a thousand used cars and trucks. Test drive your favorites and see what kind of loan or lease you qualify for. Maybe the decision will be easier than you think. You have tons of choices at the Folsom Auto Mall. Start browsing online now. Check out our new car inventory and our used car inventory; we even have a huge selection of used vehicles under $15,000! Please reach out to one of our dealerships if you have any questions.
 



Should I Buy New or Used?

 

Tags: newcar, new, Used cars